Credit card companies will reduce lending by more than $2 trillion over the next 18 months in a dangerous and unprecedented move for US consumer spending. By the way, more than 70 percent of US households have credit cards.
Lenders that may have difficulty raising capital and want to avoid losses from rising loan defaults are pulling in credit lines.

Consumers are already cutting back on spending as job losses and equity market declines sap confidence. US consumer purchases fell 1 percent in October, the most since the 2001 recession, the Commerce Department said last week.

The economy lost 300,000 jobs in November, economists estimated before this Friday's jobs report, making for nearly 1.5 million jobs lost this year.

Pulling credit when job losses are increasing by more than 50 percent year-over-year in most key states is a dangerous and unprecedented combination. The Fed last week disclosed two new steps to unfreeze credit for home buyers, consumers, and small businesses, committing up to $800 billion.

American Express Co., the largest US credit card company by purchases, said in October it will cut 10 percent of its workforce to reduce costs after four straight quarterly profit declines caused by rising defaults.

If you plan to wait out this housing downturn, intending to buy a home when the coast is clear, you better start checking your credit reports now. There may be some surprises. Credit card companies are reducing credit limits on some borrowers. For some people, that may cause a drag on their credit score.

Here's why: A major factor in calculating a person's credit score is credit utilization. When your total available credit shrinks, the percentage of credit being used goes up, and that has the potential to damage your credit score.

A good credit score is necessary to get the best loan rates. For more than a year, lenders have been requiring higher scores as mortgage-underwriting standards tightened. Credit-card companies also want to control their risk; that's why they're reeling in credit limits.

If your credit limit is cut, it might be difficult today to change the lender's mind. In addition to cutting limits, companies have been making changes to interest rates and fees. They're also reaching out earlier to borrowers when they have missed a payment, using a "soft touch" to help them create payment plans soon after the due date has passed instead of waiting a month.

Not everyone is seeing their credit disappear. To determine where to make changes, companies look at customers' credit scores and their track record for paying bills on time. They also base decisions on their experiences with people who have similar credit scores. If, say, a company's data shows that people with FICO scores of 710 or less have shown a higher pattern of risk lately, someone with a 700 score could be affected.

Unfortunately, that creates the possibly of a consumer experiencing a "snowball effect," which could push the score down even farther. Let's say lender 1 reduces your limit because it's tightening up on credit exposure. Your score drops.

With that lower score, "lender 2 is going to lower your credit limit," pushing your score down even more, he said. This scenario hasn't played out very much yet because there is some lag time. It takes time for a credit reduction to be reflected in a score, and it would take additional time for a second lender to react.

Those with credit accounts that haven't been used in a while might also be affected. They granted you a product and they want you to use that product. And if you're not using a credit card, I could see the credit cards saying 'If you're not interested, we're not interested in keeping this on our books.

This is one for the wackos. If you are fascinated by crazy products, then check out this site, ShopWiki blog. To be frank, I never heard of it before but from what I saw, it is a nice online market and offers attractive prices for all their products.

To test your imagination, can you imagine a popcorn maker in the shape of a duck, so that it looks like it's vomiting the popcorn!

Next, how about getting comfy for your sleeps on flights (I assume you are not flying on first class). You can always get an inflatable travel pillow which is featured on ShopWiki’s blog. The guy being advertised is sleeping so soundly, I think the pillow will do just as well on bus trips.

Lastly, do not forget interesting stuff for the girls - Hunk Friday. It is a special day dedicated to the wanna be hunk and you can celebrate that "Hunk" with all sorts of things for sale on the web.

I don't know if I should tell my wife about this site. Shopping online is a hobby for her and with hot hunks around, my credit cards could be hit very hard.

If you plan to buy a home in the next year, there are some things you can do to keep your credit looking as good as possible.

1. Check your credit report.

Find out if there have been changes to your account limits, and make sure there aren't any errors. Look for any negatives on your report — many negative items should be removed after seven or 10 years.

2. Don't get close to credit card limits.

About 30 percent of your FICO is based on the ratio of the amount owed on active credit cards to your available credit. But utilization on individual cards is important, too. Getting close to the limit on one credit card will also reflect negatively on your score. Pay down balances as much as possible.

3. Keep accounts active.

Accounts get closed when there hasn't been activity for a while. Make small purchases on cards a couple of times a year — then pay them off right away — to keep accounts active and your available credit up.

4. Pay bills on time.

This should be easy but could prove challenging for people who could lose their jobs in the months ahead. Be proactive and contact the credit-card company as soon as possible if you're having problems paying your bill. Payment history counts for about 35 percent of your credit score.

5. Don't apply for new cards.

Store cards are tempting when they offer discounts at the register, but don't bite. Applying will have a negative effect on your score in the short term.

When I saw some tactical gear last week, I remember my school days when attending the military trainings. Actually, I have little interest in those trainings, especially those drills under the scorching heat in our school, but I like wearing those military uniforms. It makes me feel like a toughie.

And what I like best is when me and my classmates go out wearing the Type C get-up (military shoes, pants, and white shirt). I’m pretty sure, we made an impression then. Now that I’m no longer in school, I surely miss those days. I miss wearing the military uniforms, specially the Type C.

For those who want to try out these uniforms, signing up the army is too drastic. I have found a better way - this site offers cool Tactical Pants and even have them delivered to my doorstep. And that is courtesy of TacticalPantsUSA.com, the company that sells lots of tactical stuffs and other military items.

Tactical Pants USA, Inc is a sister company of LA Police Gear, Inc., the main company which offers a larger selection of tactical products. Tactical Pants USA was established to better serve the 5.11 Tactical customers. Among the items available are varieties of tactical pants, tactical watches, tactical shirts, tactical footwear, tactical knives, tactical polos, tactical gear bag, etc.

And this is more pleasant is that they offer free shipping for every purchase of $50 or more. Plus not only that, they are giving out free items! Once you placed your orders, expect to receive your merchandise within 24 hours. If they cannot be shipped for any reason, TacticalPantsUSA will contact you.

I am tempted by the Tactical Hawk Glasses and Tactical Sabre Jacket. If you are interested, visit the site to find out more. and the Tactical Knives would make the get-up complete.

Banks had already been tightening the screws on people with less-than-perfect credit. Now, even customers who pay on time will be hit. While average credit card rates have dipped as the Federal Reserve has cut interest rates, banks and retailers are trying to offset rising losses in their credit card operations by raising rates and fees across a broader swath of their existing customers.

J.P. Morgan Chase & Co.'s Chase unit is raising rates on credit card cash advances, overdraft protection and the rate it charges when cardholders exceed their limit or are late paying. The bank will also start charging a new $10 monthly service fee to some cardholders who have been carrying large balances for at least two years, while raising their monthly minimum payments to 5 percent of their outstanding balance, from 2 percent.

Citibank and American Express Co. have been notifying groups of cardholders that they will be raising their regular interest rates by two to three percentage points. Amex also is raising rates on cash advances, late payments and defaults, increasing its foreign-exchange fees to 2.7 percent from 2 percent on consumer and small-business cards and eliminating ways to earn rewards on one of its popular cards.

Meanwhile, Home Depot Inc. reduced credit lines on its cards, which are issued by Citibank, for customers with delinquent accounts or those whose credit scores have dropped dramatically. Nordstrom Inc. began notifying customers that it was raising interest rates on its store credit cards, and Target, which has raised interest rates and late fees, is issuing fewer cards and reducing spending limits.

Poor Hank Paulson. He just can't do the right thing. The job of Treasury Secretary is really unpopular.

His latest plan for the $700 billion bailout fund to finance credit card and auto loans instead of buying troubled mortgage bonds are not popular with many economists. They believe his credit-card bailout is ill advised and unnecessary.

"I don't think providing more leverage to consumers is best for our economy in the long-term," says Adam Lerrick, who is a visiting scholar the conservative-leaning Washington-based think tank American Enterprise Institute. "The consensus is that consumers have borrowed too much over the past 10 years, so I don't get why putting them further into debt is the answer."

What's more, industry watchers say credit card and auto lending has actually held up quite well despite the credit crunch. According to market research firm Synovate, the average consumer probably has a higher limit and therefore can spend more on their credit card than they could a year ago.

"Our data shows that people have still have more access to credit than ever before," says Andrew Davidson, a VP at Synovate. "Some companies are pulling back credit to riskier borrowers, but for the industry as a whole, access and usage of credit cards is at record levels."